Tuesday, April 25, 2006

For-Profit Charter Scandal for Mr. White Hat in Ohio

In Ohio, state officials continue to try to pry open the records of corporate welfare artist, David Brennan, of White Hat Management, Inc. Of particular interest in what may be another major scandal for Ohio politics is the money trail from Brennan to former state lawmaker, Sally Perz, to Sally's daughter, Allison. Did the mother use Brennan money to create an office to hire the daughter who then hired the mother as consultant on issues related to which companies get recommended to lap up state money to run schools? State auditors want to know._____________

. . . . White Hat received $109 million in tax dollars last year. Mr. Needles refused to discuss how much is profit. But an analysis by The Columbus Dispatch last month of state audits for 17 White Hat schools found the firm made $15.4 million in combined profits and management fees last year.

Senator Fedor said she is suspicious of how Allison Perz, who is executive director of the council of community schools, attained her position and if her mother, Sally Perz, has a conflict of interest.

Sally Perz, a former Republican state lawmaker, helped create Ohio's charter schools laws and then helped form the school council her daughter now runs.

Allison Perz was out-of-town last night and could not be reached for comment.

She is paid $85,000 annually, receives a $4,800 annual car allowance, and was given a $26,000 bonus in October, 2004.

After The Blade first reported Allison Perz's income in July, 2005, Mr. Abramson responded with an e-mail explaining the bonus, which he said reflected services rendered in 2003 and 2004. "During the first several months of 2003, Ms. Perz worked without compensation from the council," he wrote.

Sally Perz now works for her daughter as a regional representative, monitoring some of charter schools sponsored by the council of community schools.

She was registered last year with the Joint Legislative Ethics Committee as a lobbyist for the council of community schools, White Hat, and several other management firms.

The elder Ms. Perz is no longer registered as a lobbyist for any company other than her own, The Capital Link Inc.